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Farrar Corporation has two major business segments-Consumer and Commercial. Data for the segment and for the company for March appear below: In addition, common fixed expenses totaled $210,000 and were allocated as follows: $122,000 to the Consumer business segment and $88,000 to the Commercial business segment. Select one: a. test b. test c. test d. test

Sagot :

Answer:

The answer is "[tex]\$ 137,000[/tex]"

Explanation:

Please find the complete question in the attached file.

Commercial sector contribution margin

[tex]=\$137,000[/tex]

Margin per unit of contribution = sales price – Unit cost variables

Margin of Contributions = Revenue Sales - Fixed expenses

Aerospace industry variable costs

[tex]=\$280,000- \$143,000 =\$ 137,000[/tex]

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